- The Kiwi pair continues to take advantage of the US Dollar (USD) weakness.
- The US-China trade stalemate holds the spotlight.
- New Zealand Credit Card Spending could offer fresh impulse but major attention will be given to Wednesday’s RBNZ.
Despite witnessing dearth of catalysts for the New Zealand Dollar (NZD), the NZD/USD pair holds its strength as it confronts the 50-day SMA level of 0.6591 at the start of the week’s Asian trading session on Monday.
The Kiwi pair managed to take advantage of the USD’s worst week in a year while on and off signals concerning the trade negotiations between the US and China seemed to have grabbed less attention from the Antipodeans buyers.
The greenback couldn’t avoid the bears after the US Federal Reserve finally appreciated rate cut expectations. Additionally, following second-tier data and risk-off moves also played their parts to drag the currency downwards.
Recently, China’s Global Times reported that FedEx, one of the leading US firm, is likely to be added to China’s ‘unreliable entities list’. This should have negatively affected the Kiwi pair as the dragon nation is risking trade negotiation with the US, which in turn can have an adverse impact on the commodity front due to the nation’s status of world’s largest industrial player. However, Kiwi bulls seem in no mood to buy the news.
Moving on, May month Credit Card Spending from New Zealand is likely an immediate directive for the pair trades. The early signal for economic activity is expected to have grown by 5.4% versus 4.5% prior on YoY basis.
On the other hand, the Chicago Fed National Activity Index for May and Dallas Fed Manufacturing Business Index for June can also entertain momentum traders. While the activity gauge from the Chicago Fed is expected to come in as -0.37 against -0.45 previous, the Dallas Fed index could recover to +4.8 from -5.3 earlier.
It should, however, be noted that Wednesday’s monetary policy meeting by the Reserve Bank of New Zealand (RBNZ) becomes the main catalyst for the pair.
Technical Analysis
Buyers can look for a sustained break of latest high around 0.6606 in order to challenge the current month top surrounding 0.6682. Though, a downside break of the 21-day simple moving average (SMA), at 0.6588 now, can recall 0.6510 and 0.6480 back to the chart.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.